Business idea: trade in building materials. How to start your own business? How to open a building materials store from scratch

Opening your own building materials store may seem like an easy business that doesn’t require a lot of investment. But is this really so?

There are currently more than 100 building materials stores in Yekaterinburg. Among them there are both small highly specialized shops and large hypermarkets, occupying thousands of square meters and having a huge range of products. So how do you stand out in this market?

This business plan is designed for opening a small store of building materials in the center of the recently built residential complex “Kamenny Ruchey”. The store development strategy allows you to save on attracting customers, satisfying the most important requirements of the modern market environment: flexibility and mobility.

Of course, this business does not promise to bring you millions in profit, but having a stable income of 100-150 thousand rubles is quite possible. The advantages of this business include the fact that the main investments are in working capital. That is, if necessary, you can quickly release the invested funds.

The main thing is to clearly identify the target audience and try to satisfy its needs as much as possible when choosing an assortment of building materials.

Sum initial investment is 893,600 rub.

Maximum revenue - RUB 1,168,333

Time to reach break-even point is 4 months.

WITH rock return on investment is 13 months.

Maximum profit- 147,800 rub.

2. Description of the business, product or service

Each of us sooner or later has to face the need for repairs. And this question becomes especially relevant after purchasing a new apartment. However, when planning to start renovations, few homeowners realize how complex the process is ahead of them. In order for repairs to be completed faster, it is necessary to ensure an uninterrupted supply of materials. And since you don’t always have the time or opportunity to go to large hypermarkets, a small building materials store located nearby will come in handy.

The main idea of ​​opening a building materials store "ByStroyka" is to open a small building materials store in an area that is actively being built up. The opening of the store is planned at the moment when the housing is completed and the apartment owners begin renovation, starting with the stage of rough finishing of the premises.

“ByStroyka” opens for the period when apartment owners move into the houses. As soon as the residential complex is occupied, the store moves to another block under construction. The lifespan of a store in one location is 3 years.

In order to realize this idea, it is necessary to minimize the financial and time costs of opening a new store. For example, indoor renovations are done with minimal investment in the style of industrial design. This does not require high-quality finishing materials and qualified specialists. The main thing is to keep it clean and dry. And as commercial equipment, collapsible metal racks are chosen, which are easy to transport and install.

Assortment of building materials store

The assortment of the building materials store will be focused on all stages of interior decoration. Thus, the store satisfies the needs of both those who want to purchase all the materials necessary for repairs in one place, and those who are simply not ready to travel far to buy the missing parts.

Most of the assortment will be on display in the sales area. Buyers will also be able to explore supplier catalogs from which they can place an order. Suppliers include both foreign and domestic manufacturers.

Sample list of products:

  1. Construction mixtures: plaster, putty, leveling mixtures;
  2. Tile adhesive;
  3. Plasterboard sheets;
  4. Self-leveling floors;
  5. Paints;
  6. PVC pipes;
  7. Metal-plastic pipes;
  8. Polypropylene wires;
  9. Construction tools;
  10. Electrical goods;
  11. Wallpaper;
  12. Ceramic tiles, etc.

Due to its limited size and small warehouse stocks, the ByStroyka building materials store is able to quickly adapt to changes in customer demand.

3. Description of the sales market

The difficulty of opening a building materials store is that there are many construction hypermarkets and retail companies on the market that provide a huge range of products. Large networks cover all stages of construction and renovation - from the beginning of construction to the final finishing of the premises. In addition, it is impossible to compete with such companies on price due to the huge difference in the scale of activity.

However, it is possible to find your niche in this business if you choose the right location, wisely think through the store’s assortment, and carefully organize the process of delivering materials to the end consumer.

It is best to open a hardware store among new buildings and near transport interchanges. The location of the "ByStroyka" store is Yekaterinburg, residential complex "Kamenny Ruchey". The deadline for completion of the residential complex is the fourth quarter of 2015. Address - st. Shcherbakova. The residential complex consists of 4 buildings of 26 floors. The total number of apartments is 904. The first three floors will be used as retail space.

The target audience of the ByStroyka store is the owners of apartments in the Kamenny Ruchey residential complex.

The main purpose of opening a store is to facilitate the process of repair work, as well as ensure an uninterrupted supply of materials to target customers.

The main advantage of the store is that it opens on the ground floor or basement of new buildings. In other words, he is the nearest building materials store for the designated target audience. That is, the store will have no competitors in terms of location.

In addition, since the store is close, customers do not need to take stock of goods. It is possible to calculate the required amount of material for each stage of work and place an order in advance. This allows clients reduce costs for delivery of materials.

SWOT analysis

Project strengths

Vulnerabilities of the project

  • Location;
  • Quality of service;
  • Range;
  • The ability to change the product range and respond flexibly to demand;
  • Direct proximity to the end consumer;
  • Sale of assortment in stock and on order.
  • Small warehouse;
  • Lack of large wholesale discounts from suppliers due to low production volumes.

Opportunities and prospects

External threats

  • Population of the area will ensure an increase in the level of demand;
  • After full occupancy, the store moves to another area under construction.
  • Increase in prices for raw materials and materials;
  • Disruptions in the supply of materials.

Due to the fact that the modern real estate market is unstable, a building materials store must be flexible in every sense. The ByStroyka store meets the requirements of mobility: we easily adapt to changes in customer demand and change location, focusing on the target audience.

4. Sales and marketing

The main principles of the company's work are flexibility and mobility.

Flexibility allows you to quickly adapt to changes in buyer demand, as well as capture audiences of varying incomes.

Mobility allows you to be in close proximity to your target customer.

This business strategy is non-competitive, since there is no need to wait until the client finds our company. We find the client ourselves and provide him with comfortable conditions for cooperation.

It is important that the building materials store has a bright sign. The sign should be located on the facade of the building, and also be clearly visible from the road when moving in any direction. The cost of the sign is 60,000 rubles.

In order for the target audience to know about the opening of the store, it is planned to distribute leaflets inside the residential complex. The flyer offers a 10% discount on your first purchase.

After this, additional involvement is not required, since the client receives a sufficient number of benefits from cooperation: no need for delivery, convenient location, high-quality service, relatively low prices.

5. Production plan

6. Organizational structure

Minimum staff - 7 people:

  1. Director;
  2. Purchasing Manager;
  3. Accountant;
  4. 2 sales cashiers;
  5. 2 sales consultants.

The cashier and the sales consultant work in pairs and are simultaneously on the sales floor. They can replace each other at work during periods of active sales.

Responsibilities of the sales consultant:

  1. Provide quality assistance to customers when choosing materials;
  2. Generate requests for ordering materials;
  3. Receive goods to the warehouse;
  4. Place goods on store shelves;
  5. Monitor changes in demand, participate in the formation of the assortment of goods in stock (together with the purchasing manager).

Responsibilities of the cashier:

  1. Release goods to customers, accept payments, issue checks;
  2. Work with a cash register and 1C program;
  3. Process returns and exchanges of materials;
  4. Monitor compliance of product availability in the warehouse and in the program;
  5. If necessary, replace or partially assume the responsibilities of a sales consultant.

The volume of sales directly depends on the quality of work of the sales floor employees. After all, they are the ones who establish contact with the end consumer. Therefore, sellers must be well versed in the product range, have an understanding of the technical characteristics of materials, and be able to sell related products. They must be friendly and sociable, stress-resistant and resourceful, and they must be able to quickly resolve conflict situations.

Sellers' work schedule is 2 working days/2 days off. Opening hours: from 9.00 to 22.00. Salary - 20,000 rubles + bonus (1% of revenue)

Also, once a month, a warehouse inventory is carried out, in which all employees of the sales floor participate. Inventory is carried out outside working hours and is paid separately - 250 rubles per hour.

Responsibilities of the Purchasing Manager:

  1. Search for suppliers, conclusion of contracts;
  2. Serving large customers: from ordering to delivery;
  3. Formation of a product range (together with a sales consultant);
  4. Drawing up a supply chain and searching for a transport company;
  5. Research of the competitive market, search for opportunities to expand the range;
  6. Formation of a pricing strategy (together with the director).

The purchasing manager must be a proactive employee who researches the market on a daily basis and looks for opportunities to reduce the purchase cost of materials. He must quickly find opportunities for profitable cooperation with wholesale companies and distributors, as well as maintain further relationships.

The purchasing manager's work schedule is 5 working days/2 days off. Opening hours: from 9.00 to 19.00. Salary - 25,000 rubles + bonus (1.5% of revenue).

Accountant responsibilities:

  1. Organization of company accounting;
  2. Timely submission of reports;
  3. Cashier management;
  4. Control over the inventory;
  5. Carrying out the director's orders.

An accountant must be an attentive and demanding person who structures and maintains the order of all document flow of the company. He must also regularly monitor changes in legislation and find opportunities to reduce costs in the area of ​​mandatory payments.

The accountant's work schedule is 5 working days/2 days off. Opening hours: 9.00 - 18.00. Salary - 25,000 rubles.

Director's responsibilities:

  1. Manage store employees;
  2. Develop a company development strategy;
  3. Research the real estate market and look for opportunities to expand the company;
  4. Prescribe job descriptions, systematize the work of all employees;
  5. If necessary, replace employees;
  6. Analysis of the company's activities, development of measures to improve the quality of trade.

In our store, the responsibilities of the store manager are performed by the owner. He controls the entire process of the store from concluding contracts with suppliers to delivering goods to the end consumer. But his responsibilities include not only ensuring the smooth operation of the store, but also looking for further ways of development. First, he needs to carefully monitor changes in demand depending on what stage of renovation the majority of buyers are at. Secondly, he needs to look for opportunities to move the store to another block under construction after the residential complex in which the store is currently located is completely occupied. That is, the store must have time to move before revenue falls below costs.

Since own business can be compared to a child, the owner’s work schedule is not limited. The main task is to always be aware of both internal business changes and external market changes. The owner's salary depends on the store's profits, as well as the decision to distribute profits.

The total wage fund per month (excluding bonuses) is 130,000 rubles.

7. Financial plan

Investment costs

Income and expenses

The income of a hardware store is calculated based on the size of the potential market.

The volume of the potential market is equal to the number of apartments in the residential complex. 20% of apartment owners shop exclusively at construction hypermarkets, so only 80% of potential buyers will enter our store. Of these, 50% are active customers who regularly order and purchase necessary materials. The frequency of purchases varies from 4 to 8 times a month. Another 30% make purchases 2 to 4 times a month. The remaining 20% ​​of customers visit the store only when necessary, their frequency of visits is 1-2 times a month.

Also, do not forget that on average, apartment renovation lasts from 6 months to 1 year. That is, during this particular period, an individual client makes active purchases.

Average check in a hardware store - 5 thousand rubles.

Based on this, we calculate the estimated revenue.

Market size and revenue potential

Total number of potential buyers

The size of the target market of regular customers, of which:

shop 4-8 times a month

shop 2-4 times a month

shop 1-2 times a month

Average check, rub.

Average monthly revenue, rub.

1 168 333

Revenue per month for the initial period (first 6 months), rub.

584 166,5

Full occupancy in new buildings occurs within 3 years from the commissioning of the houses. But the change in customer activity has the following trend: in the first six months, revenue gradually grows to 500,000 rubles, as apartment owners are just starting to carry out renovation work. After about 8 months to a year, the store reaches its maximum revenue. During this period, active settlement of the residential complex occurs. Almost every apartment is undergoing renovation at various stages of finishing. This level lasts for a year and a half, after which occupancy comes to an end and revenue drops sharply.

The markup on building materials ranges from 40-70%. Let's take an average markup of 50%. Therefore, the average revenue minus the costs of materials will be 194,722 rubles. And the maximum revenue minus the cost of materials will be 389,450 rubles.

Let's look at the structure of fixed costs:

Cost structure of a hardware store

Renting premises

Monthly salary for employees - salary

Taxes + social contributions

Rent a gazelle for a month

Communication services

Communal payments

Trade is considered the domain of budding entrepreneurs. “This is the simplest and therefore the most widespread type of small business,” says sociologist Arkady Semenov from Moscow. - Take, for example, building materials store. According to random surveys, where would you start your business, from the list of ten proposed ideas, many gave preference to selling goods for the repair and decoration of apartments. It turned out that this is even more interesting than a car service or.”

And in fact, almost all people, with very rare exceptions, in one way or another at least once in their lives bought wallpaper for their apartment, screws for fasteners, taps for plumbing. Moreover, due to the constant bustle and queues, one gets the impression that almost all stores of this profile are successful. Is this really so and what needs to be done to open a successful retail outlet with repair goods, we decided to find out.

Optimists and pessimists

Judging by the information and discussions on the RuNet, the topic of owning a building materials store is popular. Here are some posts worth checking out:

“...I would like to hear the opinion of knowledgeable people: how profitable is it to open a building materials store?” - forum member Bulavka is interested.
“If there is an opportunity, then there is nothing to even think about, open up, develop, prosper! This type of business will always be in demand,” another forum participant, shahter78, is convinced.
“I’ve been in the subject for a long time,” a certain Dmitry Ivanovich doubts. - There are enough problems, the most important of which is the attractive price. I don’t know how to achieve it. Repairmen are cunning people. They are looking for something inexpensive. Moles dig the ground. If you raise the price a little, your customers will blow away like the wind. And trading cheaper than competitors is at a loss.”

Economist experts, in particular Mira Kolomiytseva, who specializes in small business, considers the last statement a kind of cry from the heart. “Numerous publications on the topic of “owning your own building materials store” have nothing to do with reality,” she says. - For example, some authors link starting amounts to retail space, saying these are key indicators. Abstract figures are given, the observance of which supposedly guarantees the success of the undertaking. In particular, 500 thousand rubles are needed as working capital for a point of 100 square meters. Meanwhile, this disorients budding entrepreneurs.”

According to Kolomiytseva, people have the false impression of a quiet business that will generate income in any case. Meanwhile, the store should be “correctly configured” in terms of assortment with taking into account the prices of the nearest wholesale distributors.

We are talking about a kind of road map that should be drawn up before the start. “Buyers don’t like the narrow specialization of a building materials store,” says Valery Andreev, a businessman from Rostov-on-Don. - As a rule, they come with a list, according to which they buy. Therefore, the assortment should be as thoughtful as possible. I know one entrepreneur who, in a large chain building materials supermarket, stood at the cash register and quietly took into account who, what and how much was buying.”

In this assortment, on the one hand, duplicate items should be excluded, since unnecessary items are expensive to service. On the other hand, transport and storage costs are optimized. “It is necessary to establish a clear system of interaction with distributors,” advises Anna Smirnova, director of a small building materials store. - Good personal relationships are important here. In this case, it may be possible to access the changing price lists of wholesalers via the Internet.”

Expense arithmetic

Anna Smirnova, based on personal experience, says that the store should have convenient transport accessibility. This could be a residential area, or even an industrial zone, or an area along the main entrance and exit from a city or village. “Renovation of premises may be the most budgetary, but you will have to fork out for equipment,” Arkady Semenov is sure. “It’s psychologically important for people to buy in a familiar work environment, and certainly not in a barn.”

Therefore, it is necessary to install up to 3 meters high and 1 meter wide, as well as several glass cabinets that can be locked with a key. You will probably need a turnstile for buyers, a packing table and about ten chrome-plated carts for purchased building materials.

Of course, each store should have its own business project, but basic indicators should still be taken into account. We present them in a simplified table.

Cost items for opening a store

Position Amount, rub. Note
Working capital 5-7 thousand per sq. m of area But not less than 600 thousand rubles
Trade equipment (racks, display cases) 2-3 thousand per sq. m of area -
Rent and salary 2-3 thousand per sq. m of area 1 manager per 50 sq. m

To summarize, we can say that opening a building materials store will require a businessman to detailed planning and strict implementation of the plan. Experts believe that the “break-even point” will be passed within a year from the moment of opening, while the profitability of the business should be at least 15%.

* The calculations use average data for Russia

1,220,000 RUR

Starting investments

473,000 ₽

133,000 ₽

Net profit

18 months

Payback period

Opening a building materials store means starting a profitable business that is in demand at any time. By investing about 1 million rubles, you can earn 150 thousand rubles monthly.

“Repairs cannot be completed, they can only be suspended” - worldly wisdom indicates one of the reasons why it is worth opening a hardware store. There will always be a demand for building materials: while some are building, others are repairing and vice versa. The development of the construction market in Russia contributes to the fact that a lot of people are building and renovating. Even if there is no need to carry out repair work in your home, nails, a hammer, a screwdriver, etc. will be useful in everyday life. Therefore, opening a hardware store from scratch is a great idea for a profitable business. To figure out how to start your own business and how much it will cost, we offer a detailed guide that will answer the basic questions of a novice entrepreneur.

1. Market overview

The dynamic development of the construction industry and the real estate market in Russia contributed to the growth in demand for building materials. This was accompanied by the emergence of new retail outlets - from small pavilions to construction hypermarkets. The building materials market increased by 20% annually.

Today, there are more than a thousand general and specialized chains of construction stores on the market, with the top 10 largest retailers accounting for almost 25% of the market. The 2014-2015 crisis consolidated the success of large construction stores. Increased competition in the market and the regional leadership of large market players led to the fact that other construction stores faced problems: a reduction in sales and, as a result, a deterioration in their financial condition.

The difficulty of competing with construction hypermarkets lies in their aggressive pricing policy and wide assortment, covering all stages of construction and renovation. When planning a purchase, a potential client is inclined to choose a large shopping center. There are many reasons. This includes a wider range of products, lower prices, the ability to buy everything you need at one outlet, and service (consultations, delivery services, etc.).

However, there are situations in which the buyer would rather go to a small hardware store. This includes the purchase of a small amount of building materials for cosmetic repairs, the replenishment of materials that ran out during repairs, and minor household issues that require urgent solutions. In this regard, since 2015, there has been a tendency among construction stores to change the assortment structure with the replacement of construction materials with household goods.

The decisive point in this area of ​​\u200b\u200btrade is the favorable location of the store. While large retail outlets occupying huge areas are forced to locate on the outskirts of the city, small hardware stores can open in a residential building, shopping center or local market. Therefore, despite the high level of competition in the building materials market, this area can become a profitable business. The main thing is to choose the location wisely and plan all the stages of opening a retail outlet.

Ready ideas for your business

Thus, a hardware store as a business has its advantages and disadvantages. The main advantage is the high demand for the product, which guarantees a stable income. According to statistics, the average family in Russia makes repairs every 5-7 years. This does not take into account purchases to maintain repairs. The profitability of a hardware store can be 30-32%, depending on the markup on goods.


Difficulties of business selling building materials:

    Tough competition in the industry. In the market, you will have to compete not only with small retail outlets, but also with construction hypermarkets, which can offer consumers a wide range and lower prices;

    Price policy. It is necessary to set the optimal price for goods, since inflated prices will scare off potential customers, and too low prices will not allow the business to recoup. The best option is to analyze the pricing policy of competitors and reduce prices by 2%;

    The need to provide a wide range of products to interest the consumer. Firstly, there is an important task to correctly formulate the assortment, taking into account the preferences of the target audience. Secondly, there is a need to establish contacts with a large number of suppliers and select the most suitable ones;

    Seasonality of sales. Statistics show that the peak of retail sales is recorded in the spring and autumn months, summer sales are 70-80%, and winter sales are 50-60% of the maximum. Moreover, seasonality is also observed in individual product items, which is why a wide assortment of a hardware store is important.

2. Store format and assortment

As mentioned above, it is more rational for a novice entrepreneur to open a store in the “next door” format. Its scale can also be different: from a small pavilion with building materials to a supermarket. It all depends on the chosen place for trading and financial capabilities. We will look at how to open a hardware store, using the example of a small supermarket offering customers more than 100 product items.

For a store of this sales format, you should rely on consumables used in repair work (fasteners, paint and varnish products, adhesives, construction tools). Based on the format of the store, its assortment is determined, which should include the following categories of goods:

    paint and varnish products (paints for interior and exterior use, primers, impregnations, varnishes and coatings for various materials, as well as rollers and brushes);

    building mixtures, cement, primer, putty, alabaster, etc.;

    polyurethane foam, sealant, liquid nails, mounting adhesive;

    hardware of various modifications and sizes, nails, screws,

    wallpaper. This group of products should be represented by a wide range to satisfy the tastes and requirements of different consumers. Related products include adhesives, brushes, etc.;

    floor coverings (laminate, linoleum, carpet, parquet and related products in the form of fasteners, underlay, baseboards, etc.);

    construction tools (rollers, spatulas, hammers, nail pullers, drills, screwdrivers, etc.).


Before forming an assortment, you should conduct a thorough analysis of the market, suppliers and assortment of competing stores. This will allow us to determine consumer demand and select products in such a way as to create a unique offer on the market. Important! You will be of greatest interest to the buyer in two cases: if you can offer a unique product that is not on the market, or the same one, but at a more attractive price. The fact that it is close to home is also significant, but since building materials are not spontaneous purchases, you should not rely on this alone.

Basic recommendations for forming the assortment of a hardware store:

    It is desirable that each group of goods be represented by several manufacturers in different price categories. At the same time, goods in the mid-price segment must make up at least 60% of the entire assortment;

    choose proven, high-quality suppliers, since the store’s reputation depends on it;

    When choosing suppliers, also pay attention to whether they are represented in other stores. Unique offers on the market will attract buyers;

    If a product is not in demand, its stocks should be reduced, but not eliminated from the assortment completely.

It is also proposed that the store operate in a self-service format. As practice shows, such a system promotes sales growth. For this format, products should be divided into categories for convenience. A consultant is provided for each department (or related departments).

Advantages of a hardware store operating in a mini-market format:

    convenient location for clients. Construction stores located within walking distance are, in certain cases, a more attractive option than hypermarkets located far from the city;

    variety of assortment. The area and format of the store allows us to offer a wider range of products than in construction pavilions. Not only products from popular manufacturers can be presented here, but also less common brands. Construction hypermarkets usually work with certain brands and are not inclined to change suppliers. Smaller stores are more flexible and can work with a wide range of suppliers.

    customer loyalty system. At the moment, not many construction stores pay attention to policies to attract customers. You can correct this error and provide, for example, a system of discounts for regular customers.

3. Selection of location and premises

As with any retail establishment, the location of the hardware store plays an important role. A favorable location determines 70% of the success of a retail outlet. The store location assessment takes into account such parameters as area characteristics, ease of parking, intensity of pedestrian flow, visibility and remarkableness, and proximity to similar businesses. A good option would be the area of ​​new buildings, as well as residential areas remote from large construction stores.

Ready ideas for your business

When choosing premises for a store, the question arises: should you rent a retail space or purchase it as your own? Entrepreneurs recommend not to rush into purchasing retail space and to work in rented premises for the first two years. If you make a mistake in choosing a retail outlet or things don’t work out, it will be much easier to simply vacate the rented space.

Requirements for the premises of a hardware store:

    The required store area is at least 100 square meters. m. Otherwise, there is a risk that the store will be unprofitable.

    The sales area should be square or rectangular in shape, without unnecessary bends - this will make it more convenient to place display cases and make the most efficient use of the available space.

    The ceiling height must be at least 2.7 m.

    There should be two entrances from the sales area - for visitors and for loading goods. With a sales area of ​​100-150 sq. m. for a warehouse you will need 50-70 sq.m.

    Availability of heating, ventilation, air conditioning, water supply, sewerage, ventilation and electricity in the room.

No special investments will be required in renovating the premises for a hardware store. It is enough that the room meets sanitary requirements, is dry, clean and well lit. Rent of retail space with a total area of ​​150 sq.m. on average it costs about 100,000 rubles per month. When dividing the rented area into premises for various purposes, you should allocate 100 sq.m. per sales area, 40 sq.m. for a warehouse and 10 sq.m. to technical premises.

4. Retail space equipment

The retail space should be well lit. The interior for a hardware store is quite simple and does not require large investments. However, when planning the project budget, repair costs should be included. One way or another, some minimal alteration of the rented premises will be required. Plan on at least 20,000 rubles for this type of expense.

When preparing a retail and warehouse area, there is no need for expensive finishing materials. The finished room should be bright, clean and dry. Make inexpensive cosmetic repairs and take care of good ventilation. This is all that is required from the premises for successful sales of your business. The technical equipment of a hardware store should contribute to the growth of sales, ensure productivity and profitability of trade, and meet safety regulations. In this regard, the sales area must be equipped with reliable lighting and ventilation equipment.

In addition, you should purchase commercial equipment - shelving, display cases, cash counter, cash register. Since the store operates in a self-service format, several shelves will be required on which the goods will be placed. For the initial stage, the store is equipped with two cash registers. However, the retail space should be zoned so that, if necessary, one more cash register can be installed.

Equipment costs

Name

price, rub.

Quantity, pcs.

Total cost, rub.

Wall rack

Wall panel

Island rack

Cash counter

POS system with cash register

Security and fire alarm

Baskets and trolleys (including cargo)

5. Search for suppliers and purchase of goods

Suppliers should be looked for in person, visiting wholesale centers in the city, or via the Internet. The first method is convenient because during a personal conversation it is easier to agree on partnership terms; the second is that you can save on transportation costs, reach a wide range of potential partners, find more favorable conditions and enter into contracts with suppliers not represented on the local market. It is recommended to use a mixed method of working with suppliers: buy some of the goods immediately, and take some for sale.

Ready ideas for your business

Having decided on suppliers, you need to purchase goods for the store. Practice shows that for an average hardware store, the formation of the initial assortment will require 500-700 thousand rubles. Based on the specifics of demand and the conditions of suppliers, it will be necessary to purchase additional goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to avoid oversaturation of product shelves.

6. Recruitment

The main personnel in the store are sales assistants. The success of trading largely depends on them. For a store with an area of ​​100 sq.m. Four sales assistants, three cashiers and one manager will be enough. Requirements for sales consultants: knowledge of construction products, the ability to unobtrusively offer assistance and win over the client, organization, responsibility, politeness.

Since the hardware store operates seven days a week and is open for 12 hours: from 9:00 to 21:00, a shift schedule for staff should be provided. It is recommended that each shift have two sales assistants and a cashier. Sales consultants are interchangeable personnel and can assist each other if necessary. The functions of a manager and accountant can be delegated to employees, or assigned to the entrepreneur himself, which will save money in the first months of work.

In the future, it is recommended to introduce a separate position – purchasing manager. His responsibilities will include working with suppliers, creating an assortment of goods, drawing up a logistics chain for delivering goods, and developing a pricing strategy. Before starting work, personnel must undergo training, familiarizing themselves with the range of products, their characteristics and sales technology.

In this example, the entrepreneur performs the main functions of a manager - goes through all registration procedures, recruits personnel, negotiates with landlords and suppliers, purchases goods, and is engaged in strategic promotion of the store. The manager organizes the work process, controls the work of sellers, accepts and recounts goods and draws up the relevant documentation.

The preparatory stage will take about two months, during which it will be necessary to complete registration procedures, establish partnerships with suppliers, search for suitable premises, select personnel, and purchase equipment and goods.

7. Advertising and promotion of a building materials store

The target audience of the construction store is retail buyers, 60% of which are the male population of the city aged 23 to 65 years. Another group of consumers are corporate clients represented by construction and installation teams, with whom contracts are concluded and work is carried out on the invoicing system.

Advertising for a hardware store can be divided into two types - passive and active. Passive advertising includes signs, banners, pillars, etc. Active advertising involves distributing leaflets, distributing business cards, articles in specialized publications, and advertising on radio and television. Another effective advertising tool is cooperation with repair and construction companies and teams. They will bring customers to the store and purchase building materials, and the seller will give a percentage of the sales of attracted customers.

Since competition in the segment is quite high, it is necessary to carefully consider the advertising strategy. The most effective forms of advertising for this store format are considered to be advertising in elevators, distributing leaflets, and placing bright signs. It is important to note that the sign must be located on the facade of the store building and clearly visible from the road when driving in any direction.

Proper design of the sales area is an important element of the marketing strategy. It is necessary to provide convenient navigation in the store and place the product in such a way that each item is visible to the buyer. Marketers have long established that the correct display of goods in stores largely creates demand and allows an increase in sales by 10-15%. The placement of products such as wallpaper, flooring and other finishing materials is especially important.

Basic merchandising rules for hardware stores:

    classification of placement of the entire presented range of products; separation of large and small goods;

    proper placement of product groups in the sales area in accordance with the locations of the main customer flows;

    Large items should be placed around the perimeter of the store to improve visibility of the sales area. If the store space allows, then the product is located on the lower shelves under the demonstration sample. If the store area is limited, large-sized products are issued at the warehouse with the assistance of a sales consultant;

    small-sized goods are placed according to their classification and are presented in several copies, which attracts the buyer’s attention. To display such goods, racks with hooks and fasteners are used. Small, vulnerable goods are located in an area with good visibility;

    The main volume of finishing materials requires a special layout on special equipment: a display case for wallpaper with rollers, demonstration stands. The most convenient grouping of wallpaper is by color;

    in the checkout area there are small-piece goods, goods of frequent demand and related products;

    broadcast of accompanying information allowing customers to navigate the sales floor;

    effective placement of consultants on the sales floor.


Thus, the cost of the starting advertising campaign will be 72,000 rubles. It will take an average of 3 to 6 months to promote the store and reach the desired sales volumes - during this time, customers have time to learn and get used to the new outlet.

8. Business registration

No special permits are required to conduct retail trade in building materials. To open a hardware store from scratch, you will need to collect a package of documents, which includes a sanitary and epidemiological conclusion from Rospotrebnadzor, permission from the fire inspectorate, and regulatory documents for the store. Contracts for the removal of solid waste, disinfestation and deratization of the premises will also be required.


To conduct commercial activities, you can register an LLC or individual entrepreneur with a simplified taxation system (“income minus expenses” at a rate of 15%). The choice between an individual entrepreneur and an LLC will depend, first of all, on the scope of the future business. If you plan to open one small store, then an individual entrepreneur will be enough. If you plan to open a large construction supermarket or chain of stores, it is better to register an LLC. In this case, you need to select the type of activity according to the OKVED-2 classifier: 47.52 Retail trade in hardware, paints and varnishes and glass in specialized stores.

9. Expense planning

When planning expenses, you should divide them into three groups: initial investments, variable and fixed expenses. And now, in order.

Initial investment is the amount required to start a business. This includes all expenses incurred in the first stages of the project: from the cost of finding premises to the purchase of equipment and goods. The initial investment according to our example will be 1,220,000 rubles. Please note that working capital has been added to the initial investment, which will be spent on final procurement of goods and covering expenses in the first months of operation.

Initial costs

Amount, rub.

Rent for 1 month

Room renovation

Set of commercial equipment

Business registration, obtaining permits

Purchase of goods

Working capital

Variable expenses consist of the costs of purchasing goods, including their delivery. Fixed expenses consist of rent, utilities, payroll, advertising costs, taxes and depreciation.

Fixed costs


Name

Amount per month, rub.

Rent

Communal payments

Depreciation

Payroll with deductions

Taxes (average)


10. Calculation of revenue and profit

When planning sales volumes, you should take into account some of the seasonality of the construction business - the peak of sales occurs in the spring and autumn months, and the decline in sales in the winter. The planned sales volume is calculated based on the average bill of 3,000 rubles and the number of customers - 400 people per month. With these parameters, the average revenue will be 1,200,000 rubles per month. It is possible to reach the declared sales volume in the fifth month of the store’s operation, taking into account the seasonality of the business.

How much can a hardware store earn?

We calculate based on the volume of revenue, a 65% markup on building materials and all the expenses indicated in the tables above.

Gross profit (revenue-cost): 1,200,000 –727,000 = 473,000 (rub.)

Profit before tax: 473,000 – 269,000 = 204,000 (rub.)

Net profit: 204,000 – (473,000 * 0.15) = 133,050 (rub.)

Of course, in the first months of work you should not expect such a profit, however, when you reach the planned sales volume, you can earn about 130 thousand rubles. per month. In this case, it will be possible to recoup the initial investment 1.5 years after the start. Please note that the calculations given are approximate. In order to start a successful business, you need to develop a business plan for opening a hardware store. This will allow you to assess the prospects for the development of such a business in a specific region, take into account the nuances of a specific project and competently plan each stage of implementation.


11. Risks

When planning a business, it is also worth considering the risks that an entrepreneur may encounter at different stages of the project. Its specificity determines the following operating risks:

    increase in purchase prices for goods, unscrupulous suppliers. In the first case, there is a risk of increased costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in the trade process due to a shortage of goods. It is possible to reduce the likelihood of these threats by choosing suppliers wisely and including in the contract all the necessary conditions that provide for financial liability of the supplier in case of their violation;

    insufficient level of demand. Firstly, the demand for building materials has a pronounced seasonality; secondly, it is closely related to the economic situation in the country. In this regard, the risk of low demand is one of the most likely and can arise both due to low solvency of demand and high distribution costs. It is possible to reduce the risk by carefully planning the store’s activities and financial results, wisely choosing retail space, holding various promotions and discounts, stimulating repeat purchases, and flexible pricing;

    competitors' reaction. Since the building materials market is quite saturated and highly competitive, the behavior of competitors can have a strong impact. To minimize it, it is necessary to create your own client base, constantly monitor the market, have a customer loyalty program and create competitive advantages;

    property risks. This category includes risks associated with damage and theft of goods. The likelihood of this risk occurring is increased by a self-service system. The threat can be minimized by having a sales consultant check the goods that arrive at the store and monitoring the situation on the sales floor;

    refusal to provide rental premises or increase in rental costs. Since location is one of the most important parameters for trading, losing a location can result in large losses. To reduce this risk, it is necessary to enter into a long-term lease agreement and carefully select the landlord;

    problems with personnelwhich means low qualifications, staff turnover, lack of employee motivation. The easiest way to reduce this risk is at the recruitment stage by hiring employees who meet all the requirements. It is also worth providing bonus motivation for employees;

    a decrease in the store’s reputation among the target audience due to management errors or a decrease in the quality of services. It is possible to mitigate the risk by constantly monitoring the quality of goods and service, receiving feedback from store customers and taking corrective measures.

SUMMARY

Like any business, a hardware store has its advantages and disadvantages. The main advantage is the high demand for building materials. It is provided not only by those consumers who make repairs in new buildings, but also by residents who carry out repeated repairs. This means that one consumer visits the hardware store multiple times, which generates sales. Therefore, the hardware store has a lot of potential buyers.

The negative point is high competition in the market. It is especially difficult for small hardware stores to survive in the fight against chain hypermarkets. However, even under such conditions you can find your niche. A well-chosen assortment, active advertising, favorable location and loyalty to customers will help with this.

If you manage to win over your customers, the store can become profitable within 3-4 months after opening, and the initial investment will pay off in 1-1.5 years. A building materials store can earn about 1.5 million rubles. per year and become a promising business that has room to grow.

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rent + salaries + utilities, etc. rub.

The demand for building materials is stable and no changes are expected in this segment. With proper organization of trade, the right choice of suppliers, location, and selection of assortment, the store will bring good profits.

Trade in construction materials is booming. The constant demand for building materials makes the business of selling them promising, despite the increase in supply (see “”).

Trade in building materials is carried out at different levels: they are sold by large specialized construction supermarkets, medium-sized stores, stalls in bazaars and other crowded places. Conventionally, retail outlets with this specialization can be divided into four groups:

  • Small shops or pavilions with an area of ​​up to 100 square meters. m, assortment – ​​10-20 positions.
  • Stores of 150-200 sq. m area, partially renovated. The assortment of such stores includes 40-70 items and can offer 1,000-2,000 varieties of goods.
  • Large stores (500-1,000 sq. m.) with good design and warehouse of goods (200-2,000 sq. m.). The assortment of such stores includes 70-100 product items and 10,000-15,000 articles
  • Warehouse stores with a total area of ​​2,500 sq. m. From 15 to 30 product groups and 200-1,000 items in the assortment. Sometimes such stores have a “show room” where samples of the products offered are displayed.

According to the scale of trade, profits can range from hundreds to tens of thousands of dollars per month. Sellers note the high profitability of this business and the opportunity, if done correctly, to make a very good profit.

Economic feasibility of business

The profit of a building materials store depends on trade turnover, and the businessman will have to decide the main question: what kind of store he would like to see and what he can count on in reality.

The starting capital for a building materials store is about $10-15 thousand for every 100 square meters. m area. According to market experts and store owners, operating small stores is not economically feasible.

For example, the monthly turnover of a 100-meter store is $6,000-7,000 with an average markup of 25%. After settlements with suppliers, the entrepreneur has $1,500-2,000, of which he still needs to pay taxes, salary, etc. Thus, there is simply no net profit left.

Costs of a store with an area of ​​200 sq. m, subject to advance payment for the goods, will require $50-60 thousand. The monthly turnover of such a store will be 25-30 thousand dollars, and the net profit will be $1,500-2,000. A store with an area of ​​1,000 sq. m. m will provide 300 thousand dollars of turnover. Monthly turnover with proper advertising promotion will be about 100 thousand dollars, net profit - at least $5,000.

Permits for opening

The first step in organizing a store will be state registration of the chosen economic and legal form of the enterprise. In most cases, one of two options is chosen - LLC or Individual Entrepreneur. Individual entrepreneur is more suitable for a small store with a single owner. For a larger-scale business with several founders, it is more correct to register an LLC.

You can choose a taxation system depending on local legislation specific to a particular region. The most convenient would be UTII (single tax on imputed income), which is typical for retail trade enterprises in most Russian regions.

In the absence of UTII, the simplified tax system (simplified taxation system) is most acceptable. Goskomstat must provide notification of the assignment of an OKVED code to your enterprise.

To open a store you will need permits:

  • Local city administration.
  • Chamber of Commerce.
  • Sanitary and epidemiological stations.
  • Fire inspection.
  • State traffic inspectorates (for parking approval).

Choosing a store location

The criteria for choosing a location for a store are standard with some specifics:

  • Proximity to transport routes and human flows.
  • New building areas.
  • Large construction market.
  • Proximity of shops of related types, but not duplicating.
  • Urban industrial zone with minimal rental prices.
  • Non-residential property (otherwise the fire department will not allow rental).
  • Mandatory free parking in front of the store.
  • Convenient automobile (for a large store - railway) entrances.
  • Compliance with SES and fire protection requirements.

Of course, it is preferable to have your own premises. But, in the absence of one, a rented one will do. When negotiating the terms of the lease, ask whether it is possible to buy the premises over time. If business is going well, this is a very convenient way to buy out retail space.

Store equipment

Commercial equipment for a hardware store includes the following items:

  • Single-sided shelving with wall mounting.
  • Double-sided shelving for placement in the sales area.
  • Glass display cabinets for small-sized goods.
  • Showcase counters for certain departments.
  • Trading networks for certain types of goods.
  • Fasteners for placing goods on the wall.
  • Packing table.
  • Cash register (possibly several.
  • Trolleys and baskets for customers.

Product range

The store’s assortment should be formed taking into account:

  • The retail space of the store.
  • Availability of certain product groups in competitors' stores.
  • The needs of the local market demand.

In any case, the assortment should be as diverse as possible. The modern buyer has the opportunity to choose a store, so it is impossible to lag behind competitors in any case. An additional opportunity to increase trade turnover when there is a shortage of space can be trading through catalogs to order.

Typical product groups for a hardware store

Varnishes and paints. The group will include paints for all types of work, impregnations, primers, varnishes, coatings for various materials.

Wallpaper of the widest possible range: paper, fabric, silk-screen printing, paintable, with the possibility of painting in the future, colored, plain. The group will also include the entire range of wallpaper glue. Dry building mixtures, sand and cement.

Tiles, imported and domestic, floor, wall, various sizes and textures. Tile adhesive, grout, everything for cutting, leveling and laying tiles.

Plumbing: showers, bathtubs, sinks, toilets. Various accessories for plumbing: taps, corrugations, pipes, faucets, shower stands, etc. Shelves, mirrors, bathroom furniture, hangers, soap dishes, etc. are also required.

Flooring: board, parquet, carpet, laminate, linoleum, cork and bamboo. Roofing materials: metal tiles, slate, etc. Doors: entrance, interior, plastic, glass, wood, MDF. Elite and inexpensive.

Electrical equipment: chandeliers, lamps, lamps, LEDs, wires, switches, extension cords, etc. Construction tools will include rollers, brushes, spatulas, etc. This group will also include power tools: drills, hammer drills, grinders, grinders, jigsaws, etc. If there is free space, you can offer gardening tools and country furniture

Selection of suppliers

You should not limit yourself to suppliers located in your city - deliveries from neighboring cities are often more profitable, and the supplier often bears transportation costs for large volumes of deliveries.

You should use the Internet to select suppliers. The most convenient are suppliers who provide the goods (or part of it) for sale with subsequent payment or some deferment of payment.

Store staff

Store employees must be well versed in the assortment and be ready to advise the client on any issue. Each department should have at least one consultant who is well versed in the department's product group.

The manager may be an experienced specialist who knows this area well. The assortment, relationships with suppliers, and management of store personnel depend on the manager. In addition to sales consultants, you will need cashiers, warehouse managers, cleaners, and loaders.

The number of employees is determined by the size of the store. It is better to build remuneration on the principles of incentives: salary and bonus, depending on the quantity sold and the quality of work.

Economics of a building materials store

The amount of initial investment in a business depends on the size of the store. According to reviews from entrepreneurs who have experience in organizing stores of this profile, for a retail area of ​​100 sq. m accounts for about 300-400 thousand rubles of investment.

As noted earlier, it makes sense to open a small store only if the trade margin is significantly higher than 30% and the possibility of supplying goods for sale. In this case, the size of the rent for the premises is also important: it should be minimal for sufficient profitability.

Let us present some economic data on the organization and operation of a store with an area of ​​about 200 square meters. m.

  • Total opening costs from 1,500 thousand rubles.
  • Of these, working capital is 700 thousand rubles.
  • The store's monthly turnover is 900 thousand rubles.
  • Net profit 60 thousand rubles.
  • Payback period is 25 months.

Promotion of a building materials store

This type of business is highly competitive, so advertising promotion of activities must be carefully thought out.

By the time the store opens, an advertising campaign should be carried out in local media. Advertising posters and banners on city streets should not only announce the opening date of the store, but also carry information about its advantages, discounts, product range, etc.

The store must have a website on the Internet. Don’t skimp on a bright, informative website that reflects all aspects of the store’s work. Regular updating of the site is a must.

Cooperation with repair and construction organizations and individual teams is very effective. It makes sense to develop a special discount system for them to stimulate the attraction of new customers.

Trading is one of the most common business options for beginning entrepreneurs. Experts note that every tenth person, when asked what type of business he considers the most promising, answers – sale of building materials.

There is a rational grain in this, because each of us at least once in our lives bought materials for construction and repair: drywall, tiles, laminate, all kinds of fasteners, etc.
Moreover, the general fuss makes us think that the vast majority of stores of this profile still bring a decent profit. Is it really? Let's look at the nuances of organizing a business in building materials.

Classification of building materials stores

Today, both large chain stores and private traders in markets sell this type of product. Depending on the scale of the business, points are conventionally divided into the following types:

  • Pavilions with an area of ​​60-70 sq. m. The assortment is represented by 15-20 items of goods with a narrow range of applications (plumbing, floor coverings, finishing materials).
  • Full-fledged stores with an area of ​​120-170 sq. m. More products are sold here (50-70 items) with the number of articles up to 4 thousand.
  • Large stores with retail space (700-1200 sq. m) and storage space (1500-2000 sq. m). The range of such stores reaches 20 thousand items.
  • Hangar premises. As a rule, such stores do not have any decoration; they are more reminiscent of an indoor market.

Choosing a location for a building materials store

Without describing trivial phrases, we can give a recommendation to start from your financial capabilities. For example, to open a small store with an area of ​​80-100 sq. we will have to spend at least 10 thousand dollars. Practice shows that such a business format is not profitable in modern realities. The maximum that it can cover is staff salaries. It turns out that there is no point in attracting investment in such a project, and if you have your own money, it is better to invest it in something more profitable.

If we consider opening a building materials store with an area of ​​200-250 sq. m, you will have to spend about 50 thousand dollars. Project of 1000 sq. m requires an initial investment of 300 thousand dollars, monthly profitability after deducting all expenses is 4-5 thousand dollars.

This is the most profitable option for building a business. As a rule, in such stores a person can buy everything necessary for repairs. Here you can build a competent system of discounts and organize delivery.

The most promising place to open a building materials store is near busy roads and near construction sites.

You should not consider options on the ground floor of a residential building. The sale of a number of goods (paint and varnish products) is prohibited in residential buildings.

Another important question: should you rent or buy a space? Practitioners say that you can try the option of renting with subsequent purchase if the business fails. Buying premises is not the most rational option, because if problems arise with the business, another problem will probably arise - the sale of working capital.

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Product suppliers

To offer the client a sufficient range of goods, you need to cooperate with 50-100 suppliers. As a rule, large manufacturers of building materials are reluctant to accept options involving deferment or transfer of goods for sale. At the beginning, it is unlikely that you will be able to take more than 30% of the goods for sale; as the business develops, the volume can increase to 60%.

It is quite difficult for a novice entrepreneur to guess with inventory. Large chains purchase goods for storage, the quantity of which is 2-3 times higher than the monthly turnover. This policy allows us to service orders from large clients. If inventory is lower, supply disruptions may occur.